Why do people suffer from loss aversion? As anyone who has bought stocks during a bull market will know, making a quick profit is great, but making a loss is difficult to stomach! Behavioural scientists call this loss aversion. People are intrinsically afraid of losses. When compared against each other people hate losing more than… Continue reading The Psychology of Loss Aversion
Updated 16/1/18: There is a perception that decision making in financial services (FS) is far more rational than with fast moving consumer goods because FS products have more long-term consequences. Decision making in other sectors is often seen as more emotional and impulsive. This view is strongly held among FS professionals but is there… Continue reading Is Financial Decision Making Rational?